When you borrowed loan to pay for her expenses, you are considered as paying it. If you qualify to claim her on your taxes, you got to claim the education tax break. See Can I claim her?
Per IRS,
If your daughter paid and if you claim her as an exemption on your tax return, you would treat any expenses paid (or deemed paid) by her as if you had paid them. You will get the credit / deduction.
If you paid and if you claim her as an exemption, only you can include any expenses you paid to claim the benefit. If neither you nor anyone else claims an exemption for the dependent, only the dependent ( your daughter ) can include any expenses you paid to claim the credit.
If you do not claim your daughter as dependent, only your daughter can claim the benefit on his tax return.
For more information, click here: https://www.irs.gov/pub/irs-pdf/p970.pdf ( read under Who Can Claim a Dependent's Expenses?)
@psfrazer1
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